Warren Buffett's Berkshire Hathaway conglomerate reached $1T in market capitalization yesterday. The firm joins just six other US companies currently valued at 13 figures: Apple, Microsoft, Nvidia, Alphabet, Meta, and Amazon.
The conglomerate and its longtime CEO—known among investors as the "Oracle of Omaha"—have averaged 20% annual returns since the native Nebraskan bought Berkshire Hathaway, then a struggling textile manufacturer, in 1965 (see history). The firm has since grown to have controlling shares in roughly 70 companies, with a cash pile of close to $280B (including $234B in US T-bills, making it the Treasury's largest lender). Its success comes as the conglomerate approach—whereby a parent company owns majority stakes in many diverse companies—has declined in recent decades. See a list of Berkshire's current assets here.
Buffett's approach involves long-term investments in undervalued companies, with an emphasis on high-quality managers in sound businesses. Listen to a high-level summary of his annual shareholder letters here.
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